Abstract
World food trade makes it challenging to control domestic food products due to the influence of international price trends. Various issues within the country, including production and distribution, lead to fluctuations in the prices of essential food items such as rice, soybeans, chicken meat, chili, and shallots. Local governments, including the City of Bogor, play a vital role in managing price fluctuations, especially through the coordination of regional, central, and monetary policies to ensure a stable supply of goods. Most food commodities experience price pressure during harvest seasons. Unfortunately, controlling food prices becomes difficult when domestic supply decreases. This study provides an overview of the patterns of food price changes, considering variations in production capacity, seasonality, increased demand, and other specific events. The analysis involves calculating the Month-to-Month (MoM) price trends and comparing the average price with the model price for each year. The results indicate that fluctuations in food prices are influenced by factors such as commodity supply, rising production input costs, increased demand for commodities, weather conditions at agricultural production sites, import restrictions, and international demand. By optimizing cost structures in price formation, it is possible to reduce depreciation costs and transaction costs for increased efficiency. One key policy to address rising food prices is expanding the functions of Perumda Pasar Pakuan Jaya to include market operations and the management of commodity stocks, enabling better control over food prices.
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More From: Indonesian Journal of Agriculture Resource and Environmental Economics
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